Several brands like LeEco, Meizu and Celkon with pan India ambitions have had to scale back or exit. Micromax & Karbonn that once looked set to challenge the leaders find themselves swamped by competition.

The setting up of the new subsidiary is not expected to result in any major change in the organisational structure in the near future. However, analysts say it seems that the company is ensuring that it makes it VR subsidiary immune from any losses suffered by HTC corporation.